APPLE

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Transcript of APPLE

Apple was funded by Seven Job Steve Wozniak and Ronald Wayne on in 1976. Incorporated in California in Jan.3, 1977 as Apple Computer, Inc.Renamed on Jan. 11, 2007 as present name Apple Inc.The second largest information technology company by revenue:Company Background

•Apple and Samsung will dismiss all patent suits outside the US•Affects disputes in 8 countries: South Korea, Japan, Australia, the Netherlands, Germany, France, Italy, and the UK•2011 Apple first sues Samsung•Samsung sues for patent infringement•Apple has won two jury verdict with damages of over $1 billion•Samsung plans to appeal

Apple recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable.

ASC 605-15-25-1If an entity sells its product but gives the buyer the right to return the product, revenue from the sales transaction shall be recognized at time of sale only if all of the following conditions are met:

The seller's price to the buyer is substantially fixed or determinable at the date of sale.The buyer has paid the seller, or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the product. The buyer's obligation to the seller would not be changed in the event of theft or physical destruction or damage of the product.The buyer acquiring the product for resale has economic substance apart from that provided by the sellerThe seller does not have significant obligations for future performance to directly bring about resale of the product by the buyer.The amount of future returns can be reasonably estimated

Warranty Cost:

Apple provides for the estimated cost of warranties at the time the related revenue is recognized based on historical and projected warranty claim rates, historical and projected cost-per-claim, and knowledge of specific product failures that are outside of the Company’s typical experience.

ASC 460-10-25-5Because of the uncertainty surrounding claims that may be made under warranties, warranty obligations fall within the definition of a contingency. Losses from warranty obligations shall be accrued when the following conditions are met:a. It must be probable that one or more future events will occur confirming the fact of the loss.b. The amount of loss can be reasonably estimated.